Journal Entries

On May 1, 2020, Wang Company, a public company, acquired 199,500 of the 798,000 outstanding common shares from Amiah Company for a total of $1,984,000. This investment is part of Wang Com- pany's long-term business diversification plan. Wang Company's year-end is December 31. During 2020, the following investment activities occurred. 1) Amiah Company recorded an annual net income of $873,000 for its 2019-2020 fiscal year-end of June 30, 2020. 2) Amiah Company paid a cash dividend of $274,000 on July 30, 2020. Required Prepare journal entries to record the acquisition of shares by Wang Company, the revenue of invest- ment from Amiah Company on June 30, 2020 and the receipt of cash dividends on July 30, 2020. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Date Account Title and Explanation Debi Credit May 1 Answer Answerl Answer Answer To record acquisition of common shares Jun 30 Answer Answerl Answerl Answer To record profit on equity investment Jun 30 Answer Answer Answerl Answer To record dividends received on equity investment